Snap's Ad Business: Challenges and Improvements

Snapchat's struggles with brand advertising indicate the need to focus on improving its direct response ad business and attracting more advertisers.

### Snap Inc. Faces Challenges in Ad Business, Despite Some Positive Signs
* 📉  Snap Inc. stock fell almost **25% after its latest earnings report**, the biggest drop since February, with **several analysts lowering price targets**.
* 📊  Positive signs included growth in **active advertisers**, Snapchat Plus generating over **$100 million in revenue**, and improvements in **direct response advertising**.
* 🏢  The company is still facing challenges in brand advertising, indicating **more work is needed in the direct response advertising business**.
* 🔍  Snap Inc. has **850 million monthly active users**, but it is still considered a **smaller player** compared to competitors like Meta.
* 🔗  Snap Inc. is working to catch up with larger competitors in the ad business, with a focus on **improving its direct response advertising capabilities**.
* 🤔  Analysts question whether it is fair to directly compare Snap Inc. to larger competitors like Meta, given their **different market positions and ad business scales**.

Snap Shares Tumble on Weaker Sales, Profit Outlook

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SNAP's Struggle with its Advertising Business

Snapchat's advertising business is facing challenges, despite some positive signs of growth in the number of active advertisers.

The company has been able to diversify its revenue streams with Snapchat Plus, but still faces difficulties in brand advertising.

This has led to a significant drop in stock and a need for SNAP to focus on competing with larger players in the industry.

The Scale of the App and Its Active Users

The app has a substantial 850 million monthly active users, challenging the perception of its size.

However, it still remains smaller in scale compared to "Matter.